Seeker wrote:iShares states "Unitholders of record on December 29, 2011 will receive cash distributions payable on January 4, 2012". For Canadian tax purposes, is income reported in the year of entitlement or the year of receipt of the distribution?
Arby wrote:It depends on the characteristic of the distribution. If the distributions are in the form of interest or other income, they are taxed in the year they are earned, (which is the year of the Record Date). If the distributions are in the form of dividends, they are taxed in the year they are actually received, (which is the year of the Payment Date).
I'm not sure what happens if the distribution is a mixture of dividends and other income.
DavidR wrote:I believe distributions from a mutual fund trust with a record date in 2011 but a payment date in 2012 would be taxable in 2011
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